"Using VoIP (Voice over Internet Protocol) lessens telecommunications cost. It enables our OFWs to communicate with their loved ones as often as they want, our BPOs (Business Process Outsourcing) and exporters to transact businesses at lower cost making them even more competitive," said Roxas.

VoIP is a generic term that refers to all types of voice communication using Internet protocol technology, instead of the traditional circuit switched technology. It enables users from different parts of the world to engage in voice conversations, even from long distances, without having to pass through part or all of the telecommunications facilities, which reduces costs.

"In the global world of commerce there is a shift in business models brought about by technological innovations which may have rendered some of our laws practically ineffective," Roxas said referring to RA 7925, otherwise known as the Public Telecommunications Policy Act, that stemmed a heated debate over the use of VoIP as a telecom service or a value-added service.

In a memorandum dated March 29, 2005, the National Telecommunications Commission (NTC) argued that under RA 7925, VoIP is considered a Value Added Service (VAS). Giant telecom firms, however, argued against it.

"The Commission hereby defines VAS as enhanced services beyond those ordinarily provided for by local exchange and inter-exchange operators, and overseas carries through circuit switched networks," it said.

But for his part, Roxas pointed out that interpretation of the law is not the key issue. Instead, he said that it is the market forces and the technology that have overtaken certain provisions of the law.

"Until Congress comes up with its own clear definition, this is the policy position of the NTC that VoIP is not a traditional voice service, that it is not subject to capture by the telcos or the telecommunication companies. But on the other hand, it is now the market that is already ahead of us, rendering some provisions of our laws obsolete," Roxas noted. (MC)